CURRENT INTELLIGENCE BULLETIN - 1955/06/17

• Document Type: SPECIALCOLLECTION
• Collection: Current/Central Intelligence Bulletin Collection
• Document Number (FOIA) /ESDN (CREST): 03194474
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: September 20, 2019
• Document Release Date: September 26, 2019
• Publication Date: June 17, 1955

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17 June 1955 3.5(c)
Copy No.
99
CURRENT INTELLIGENCE BULLETIN
DOCUMENT NO. .
NO CHANGE IN CLASS.
I:1 DECLASSIFIED
CLASS. CHANGED TO: TS S
NEXT REVIEW DATE: e_o
AUTH: HR 70-2
DATE. 90,410 REVIEWER:
Office of Current Intelligence
CENTRAL INTELLIGENCE AGENCY
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SUMMARY
SOUTHEAST ASIA
1. Comment on Vietnamese army's campaign against dissident
forces (page 3).
NEAR EAST - AFRICA
2. Iranian defense minister predicts critical period for Ala gov-
ernment (page 3).
WESTERN EUROPE
3. North African situation seen number-one sore spot in French-
American relations (page 4).
* * *
4. Malik outlines extensive Soviet demands on Japanese (page 5).
5. Comment on the Argentine situation (page 6).
* * * *
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SOUTHEAST ASIA
1. Comment on Vietnamese army's campaign against dissident
forces:
The Vietnamese army's operations
against rebel Hoa Hao forces have
met thus far with considerable success.
Continuing pressure on Soai's forces
has reduced that group to an estimated 5,000 from its original
strength of about 7,500. The reduction is largely attributable to
the defection of several battalions in the face of the 28,000-man
government force. Premier Diem. and Colonel Duc, commander
of operations against the Hoa Hao, reportedly are :convinced that
Soai has lost effective command and that the bulk of his troops
are prepared to go over to the government's side.
Due is now apparently turning his atten-
tion to the other antigovernment Hoa Hao commander, Ba Cut,
whose estimated 3,300 troops are concentrated near the Cambodian
border, west of Soai's area.
After reducing the organized Hoa Hao
military threat, the government must still deal with guerrilla
activity. The government� however, is reported to be making
strong efforts to win over the populace in Hoa Hao areas.
Meanwhile, clearing operations south-
east of Saigon against the 1,500 remaining Binh Xuyen troops are
proceeding slowly.
NEAR EAST - AFRICA
2. Iranian defense minister predicts critical period for Ala govern-
ment:
Iranian defense minister Hedayat stated
the Ala government recog-
nizes its position is weak and the next few
weeks will be critical.
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He believes the recent return to Tehran
of Prime Minister Ala will quiet rumors of an impending govern-
ment change. Despite Ala',s weakened condition, Hedayat said,
the prime minister appears determined to continue in office.
Comment: The voting trend in the Majlis
is progressively antigovernment, and the Shah's ill-advised at-
tempts to act as his own prime minister are rapidly alienating the
landlords, the Moslem clergy, the business community and ele-
ments of the army, as well as Nationalist groups which might have
supported the Shah's program of social reform.
The Shah might sacrifice Ala as a scape-
goat for his own failures, but the situation will continue to deterio-
rate if he replaces him with an equally weak prime minister.
WESTERN EUROPE
3. North African situation seen number-one sore spot in French
American relations:
Ambassador Dillon in Paris is concerned
over the extent to which the North African
situation has become both the principal
problem for France and the sorest spot
in renc merican re tions. He reports widespread indications
that North Africa is far more in the minds of all Frenchmen than
any other external problem, and he sees little understanding of the
American policy on the area. He sees an increasing tendency to
seek to blame the United States for French troubles in North Africa.
Comment: The most pressing current
issue is the French government's insistence on additional trans-
fers of military equipment to North Africa from Indochina and
Europe. At the same time, however, there are indications that
Paris has in mind abandoning the NATO installations program for
Algeria and Tunisia, presumably to avoid introducing additional
NATO personnel into North Africa. This program had been held
up for over a year pending French negotiations with NATO on the
use of the installations to be built.
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4. Malik outlines extensive Soviet demands on Japanese:
The USSR has presented the Japanese
with a draft treaty generally patterned
after the amendments to the Japanese
peace treaty proposed by the USSR in
1951,
The principal terms included in the draft
were 1,1) MULUcti agreement on nonaggression and noninterference
in domestic affairs; (2) nonparticipation by the Japanese in any
alliance directed against a power that fought against Japan in World
War II; (3) recognition by Japan of Soviet sovereignty over
South Sakhalin, the Kurils, Habomai and Shikotan Islands; (4) mu-
tual relinquishment of claims for damages or reparations arising
out of World War II; (5) the granting of full freedom of navigation
to Soviet merchant ships in the Tsushima, Tsugaru and Soya Straits
and other waters in the Hokkaido vicinity, and restriction of free-
dom of navigation for military vessels in these waters to those coun-
tries bordering on the Japanese Sea; (6) conclusion of an agreement
providing for cultural exchange and the development of mutual un-
dersta,nding; (7) Soviet support for the Japanese application for UN
membership; and (8) provision for future commercial relations be-
tween the two states.
Comment: The Soviet Union's failure to
meet major Japanese demands and its virtual return to its 1951
position represent a stronger stand than the USSR is expected to
maintain during future negotiations.
The Soviet draft treaty strikes at the
heart of Japan's defense arrangements with the United States, and
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the Japanese have asserted they cannot accept such a proposition.
Matsurnoto's strong bid on the repatriation problem indicates the
Japanese feel they must have some face-saving concessions before
they can reach agreement with Moscow.
5. Comment on the Argentine situation:
Shortly after the announcement on 16 June
by the Vatican that "all persons connected
with the expulsion of Bishop Tato from
Argentina have been excommunicated," a
group of military planes dropped bombs
on the presidential palace. American ambassador Nufer, who saw
the bombs dropped, believed all missed the palace. He-reported
that people deserted the streets and took cover in subways and build-
ings. At the same time, according to press reports, "soldiers"
armed with machine guns were attempting to attack the palace.
The official government radio announced
at 1311 hours (DST) that the revolution had been crushed. A tight
government censorship was in effect at the time.
A second bombing took place just when the
forces of Peron appeared to be dominating the fighting in the capital.
The press reports that "waves of bombers" of the navy and air force,
Including jet aircraft, started dropping bombs around the government
buildings at 1426 hours (DST). Casualties were said to be numerous.
Following a radio address in the early even-
ing of 16 June, in which he praised the army for its loyalty, Peron
declared a state of siege and called Congress into special session to
declare martial law. The only information received after the second
bombing is from the Peron-controlled radio and press and radio re-
ports from Uruguay.
Press and radio reports from Montevideo
later the night of 16 June state that several planes of the Argentine
rebels have landed in Uruguay. And Uruguay officials announced
that the rebels and the planes had been interned.
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Provided the army and the police remain
loyal to Peron, he will almost certainly retain control of the gov-
ernment, The church-state conflict, however, carries an emotional
charge. Consequently, the situation in Argentina will remain explo-
sive during the next few months, during which time, according to a
law passed last month, elections are required to be held for a con-
stituent assembly whose duty it is to consider changing the constitu-
tion in order to bring about a complete separation of church and
State.
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